Morning Briefing - 26 October 2022
CommoPlast
Morning Briefing
26 October 2022
Brent: $93.52 (+ $0.26）
WTI: $85.32 (+ $0.74)
Naphtha CFR Japan: $676
Ethylene CFR NEA: $870
Ethylene CFR SEA: $880
Propylene FOB Korea: $855
Propylene CFR China: $885
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Major international suppliers once again step back on import PE offers to China despite the supply tightness for Saudi Arabia and Thailand origins. The dreadful weight of the slowing local consumption, falling overseas demand, and weakening Yuan against the US dollar is just too much for buyers to bear.
Deals for Saudi Arabia and Qatari LLDPE film have been done at $930/ton CFR China. “But we are not interested in keeping stock. Most of our transactions in recent weeks are back-to-back. The market is mired in uncertainties due to the glooming global economy,” a Shanghai-based trader added.
Meanwhile, buyers remain conservative about LDPE film cargoes, expecting prices to move closer to the $1000/ton mark in the coming weeks. The current market level of $1065/ton CFR China is deemed not attractive.
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In Vietnam, South Korean homo-PP yarn and injection once again dived below the $1000/ton threshold, to $980/ton CIF Vietnam. After seven weeks of maintaining a firm stance on spot cargoes, sellers started to lose confidence due to the persistently weak demand condition.
Vietnamese buyers, especially local traders, are facing some similar issues as in China: sluggish end product businesses, depreciated Dong, plus the tightening credit line from banks. Hence, customers here tend to be more selective in choosing which cargo to purchase. The expectations are that import homo-PP might soon drop below the $950/ton mark considering the lack of buying activities.
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